Uninsured Motorist Coverage: What It Is and Cost

Getting into an accident with a driver without insurance is usually not a pleasant experience. Recognizing this issue, we are providing insights on uninsured motorist coverage. What does uninsured motorist coverage entail?

Uninsured Motorist Coverage: What It Is and Cost

Perhaps you’re just learning about it for the first time, or you need further information about uninsured motorist coverage. You are in the right place.

Uninsured motorist coverage offers financial responsibility for drivers who get into an accident with a driver with no insurance.

In this article, we will provide clarity on what uninsured motorist coverage is, what it covers, and how to purchase it. Ensure you read to the end of the article, so you don’t miss out on relevant information.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage, also known as UM or UMBI, is a type of insurance that guarantees financial protection if you’re involved in an accident with a driver who doesn’t have insurance or with a driver who is unable to finance the cost associated with the damages caused.

When purchasing auto insurance, you will be given the option to add UM coverage to your policy. You can also select the coverage limit that is desirable—the maximum amount of cost your insurance company covers for the damages caused by the insured driver.

Uninsured motorist insurance covers the cost of damages caused by:

  • A hit-and-run driver.
  • A driver without liability car insurance.
  • A driver whose insurance company denies coverage.

What Does It Pay For?

UMBI covers the cost of

  • Medical bills.
  • Lost wages if you can’t work because of the car accident.
  • Pain and suffering compensation.
  • Funeral expenses.
  • Car repairs.
  • A rental car if needed.

Benefits of Uninsured Motorist Coverage

Beyond the coverage for medical bills, car repairs, pain and suffering costs, etc., UM coverage also offers additional benefits. However, these benefits vary depending on the insurance company and the specific policy. Highlighted below are the supplementary benefits of this insurance coverage:

  • Deductible Waiver.
  • Underinsured Motorist Property Damage (UIMPD) Coverage.
  • Hit-and-Run Deductible Waiver.
  • Stackable Coverage.

It is essential to note that not all insurance provides these additional benefits; the availability of these benefits largely depends on the state, insurance company, and policy. We advise that you review the policy details and have a discussion with the incurable company in order to understand the specific features and benefits included in your coverage.

How to Purchase Uninsured Motorist Coverage

If you intend to buy UM coverage, follow the steps outlined below:

  • Firstly, determine if your state mandates UM coverage alongside your car insurance policy.
  • If your state does not require UM coverage, decide if you want it as optional coverage.
  • Individuals who want to add it to their insurance coverage should match the uninsured motorist limits to their bodily injury liability limits.
  • You can then decide on other coverage and limits for your car insurance policy.
  • Explore a diverse network of insurance companies that offer UM coverage.
  • Compare them and select the one that aligns with your needs and budget.
  • Contact the insurance company and review their coverage options and policies.

How Much Does It Cost?

Generally, the average cost of UM coverage is $136 a year. Here’s a breakdown:

  • Uninsured motorist bodily injury (UMBI) costs $136.
  • Underinsured motorist bodily injury (UIMBI) cost $90
  • Uninsured motorist property damage (UMPD) cost $36.
  • Underinsured motorist property damage (UIMPD) cost $46.


Does UM coverage protect against hit-and-run-accidents?

Yes, it does. UM coverage covers the costs associated with hit-and-run accidents. Most importantly, they offer protection for individuals in a situation where the faulty driver cannot be identified or does not have insurance.

Does UM coverage cover property damage?

Primarily, UM coverage offers protection against accidents and covers the costs associated with bodily injury. Notwithstanding, there may be some policies that offer underinsured motorist damage done by an uninsured driver.

Can I use uninsured motorist coverage if I’m at fault in an accident?

Typically, UM coverage applies in a situation where you are involved in an accident caused by an uninsured or underinsured driver. If the accident was caused by you, meaning you’re at fault, your liability coverage would be used instead of uninsured motorist coverage.

What if I have health insurance? Do I still need uninsured motorist coverage?

If you reside in a state that mandates UM coverage, you will be required to get it, regardless of your health insurance. You may not need UM coverage if you have good health insurance and if your state does not mandate it.

However, we recommend UM coverage for individuals with large health plan deductibles, co-insurance, and copays. With UM coverage, you have access to loads of benefits that health insurance won’t cover, such as lost wages, pain, and suffering.

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